Spirent Communications (OTCMKTS:SPMYY) versus Lumentum (NASDAQ:LITE) Financial Survey

Spirent Communications (OTCMKTS:SPMYY) and Lumentum (NASDAQ:LITE) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Spirent Communications and Lumentum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirent Communications	$460.20 million	3.20	$12.90 million	N/A	N/A
Lumentum	$1.65 billion	7.17	$25.90 million	$0.23	733.61

Lumentum has higher revenue and earnings than Spirent Communications.

Insider & Institutional Ownership

94.1% of Lumentum shares are owned by institutional investors. 1.0% of Spirent Communications shares are owned by insiders. Comparatively, 0.2% of Lumentum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Spirent Communications and Lumentum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirent Communications	N/A	N/A	N/A
Lumentum	1.57%	-3.02%	-0.71%

Volatility & Risk

Spirent Communications has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Lumentum has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Spirent Communications and Lumentum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirent Communications	0	0	0	0	0.00
Lumentum	0	4	12	2	2.89

Lumentum has a consensus price target of $128.00, indicating a potential downside of 24.14%. Given Lumentum’s stronger consensus rating and higher probable upside, analysts plainly believe Lumentum is more favorable than Spirent Communications.

Summary

Lumentum beats Spirent Communications on 10 of the 13 factors compared between the two stocks.

About Spirent Communications

Spirent Communications plc provides automated test and assurance solutions in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through Lifecycle Service Assurance, and Networks & Security segments. The Lifecycle Service Assurance segment offers lab-based testing solutions for 5G mobile core networks, and cellular and Wi-Fi devices, as well as live solutions. This segment also provides lab and test automation solutions for the telecom industry and enterprises. The Networks & Security segment develops test methodologies, tools, and services for virtualised networks, cloud, and artificial intelligence networking infrastructure, as well as application performance and proactive security validation. This segment also offers Ethernet/internet protocol performance testing solutions, as well as navigation satellite system test and simulation solutions while addressing opportunities in the broader positioning, navigation, and timing market, including low earth orbit satellites and autonomous vehicles. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

About Lumentum

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates through two segments: Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables. It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, solar cell processing, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.